In recent years, have tornadoes and other high-wind disasters caused significant damage to crops and livestock? According to ProAg CEO Kendall Jones the answer is yes. In a recent interview with AM Best TV Jones stated that the 2020 Derecho resulted in approximately $800 million of damages to crops in Iowa, and the crop insurance industry paid about $600 million in losses. But a Derecho brings different damage than tornadoes, which are much more focused geographically.
Corn, soybeans, cotton and wheat can incur significant damage from high winds, Derechos and tornadoes. Jones reports that with the possible shift in “tornado alley” to the east, which some scientists report could be happening, less damage could fall upon wheat producers and more on corn and soybeans. Jones says crop insurance models and rates already include wind damage. Still, if the shift east happens, the data would be incorporated into the rating models, raising or lowering consumer premiums. The foundation is strong for the crop insurance models and procedures in place, but by accurately including new data points from more widespread events like Derechos and hurricanes, we can continue strengthening the program.
See how ProAg was well suited to support producers impacted by extreme weather events and what that support looks like moving forward by watching Kendall Jones’ full interview on AM Best TV here.
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